Every day your insurance claim sits unpaid is another day your cash flow suffers. For restoration contractors, payment delays aren’t just frustrating—they’re expensive. Late payments mean you’re essentially financing insurance companies while your team, suppliers, and overhead bills pile up.
After processing thousands of restoration claims, we’ve identified five critical mistakes that consistently slow down payments. The good news? Each one is completely fixable.
Mistake #1: Incomplete Documentation From Day One
The most common reason claims get stuck in limbo is missing documentation. Insurance adjusters can’t process what they can’t verify.
What’s missing:
- Before and after photos with timestamps
- Moisture readings and thermal imaging
- Detailed scope of work tied to line items
- Signed authorization forms
- Certificate of insurance
The fix: Create a documentation checklist for every job site. Use your phone to capture everything immediately. Don’t wait until you’re writing the estimate—by then, crucial evidence may be gone.
Mistake #2: Vague or Inconsistent Estimates
When your estimate says “water damage repair” without breaking down the specific materials, labor hours, and methodology, adjusters have no choice but to kick it back for clarification.
What adjusters see as red flags:
- Line items without unit costs
- Inconsistent square footage calculations
- Missing depreciation considerations
- No explanation for specialty equipment charges
The fix: Every line item should tell a story. Instead of “drying services – $3,500,” break it down: “Commercial dehumidifiers (4 units × 3 days), air movers (12 units × 3 days), daily moisture monitoring.” Adjusters process detailed estimates faster because there’s nothing to question.
Mistake #3: Not Speaking the Adjuster’s Language
You know restoration. Adjusters know policy coverage. When these two languages don’t align, claims stall.
Common disconnects:
- Using contractor terminology instead of Xactimate codes
- Not addressing policy exclusions upfront
- Failing to justify “upgrade” vs. “repair” decisions
- Ignoring depreciation vs. RCV considerations
The fix: Learn to translate your work into insurance terms. If you’re replacing carpet due to Category 3 water contamination, cite the IICRC S500 standard that requires removal. Give adjusters the ammunition they need to approve your claim.
Mistake #4: Poor Follow-Up Systems
Submitting a claim and hoping for the best is not a strategy. Claims don’t move forward on their own—they need consistent, strategic follow-up.
What happens without follow-up:
- Emails go unanswered for weeks
- Supplement requests get buried
- Payment processing “slips through the cracks”
- Disputes escalate instead of resolving
The fix: Implement a follow-up calendar. Day 3: Confirm receipt. Day 7: Check status. Day 14: Request timeline. Day 21: Escalate to supervisor. Consistency wins.
Mistake #5: Trying to Do It All Yourself
Here’s the hard truth: every hour you spend chasing claims is an hour you’re not running jobs, bidding new work, or managing your team. For most restoration contractors, claims management becomes a second full-time job they never intended to have.
The hidden costs:
- Lost productivity on revenue-generating activities
- Mistakes from juggling too many claims
- Stress and burnout
- Extended payment cycles
The fix: Calculate what your time is actually worth. If you bill $150/hour for project management but spend 10 hours per week on claims follow-up, that’s $78,000 per year in opportunity cost. Sometimes the smartest business decision is to delegate.
Stop Leaving Money on the Table
Every one of these mistakes is costing you time, money, and peace of mind. The question isn’t whether you can afford to fix them—it’s whether you can afford not to.
Need this done for you? Smart Claims™ handles the entire claims process from documentation to final payment. Our specialists speak both restoration and insurance, so nothing gets lost in translation. Submit your claim to Smart Claims™ and get back to doing what you do best—restoration work.